The UT administration has discontinued the cash subsidy under its Electric Vehicle (EV) Policy, 2022, while retaining other incentives, including exemptions on road tax and registration fees, until further orders.
The cash subsidy had already become effectively unavailable for electric cars after the quota of 2,000 personal-use cars was exhausted. In May 2025, the administration announced that new buyers would no longer receive the ₹ 1.5 lakh incentive available for this category.
The development comes months after HT reported in February that the administration’s proposal to enhance and resume EV subsidies had been awaiting mandatory clearance from the Union ministry of home affairs for nine months. The cash subsidy will be discontinued after all pending applications received so far through the EV portal are disposed of. The administration has, however, amended the eligibility criteria for the incentives that continue. From now on, consumers will have to purchase an electric vehicle in Chandigarh and register it in the city to avail themselves of the benefits. The policy also provides free public parking for EVs across the city. Administrator Gulab Chand Kataria subsequently approved the proposed amendments.
The decision, notified on September 25 through the fourth amendment to the policy, comes into effect immediately. The continuing non-cash incentives under Clause 4.1.2 include waiver of road tax and registration fees for eligible EVs registered during the policy period, as well as green number plates for EVs registered in the city. The latest decision follows a review of the EV policy by the UT Electric Vehicle Advisory Committee, chaired by the chief secretary, on August 21. Under the original policy, buyers of the first 2,000 privately owned electric cars were eligible for a subsidy of ₹ 5,000 per kWh of battery capacity, capped at ₹ 1.50 lakh per vehicle. For electric two-wheelers, the incentive was ₹ 5,000 per kWh, capped at ₹ 30,000. Buyers of e-cycles were eligible for a subsidy equivalent to 25% of the vehicle’s cost, capped at ₹ 4,000. At the time, the city had more than 20,000 registered EVs, including 4,260 electric cars and around 6,500 electric two-wheelers.
